7
(Poking tologram to Foreign Office, dated 17th Septem-
bor, 1926). But he considered that, in view of Comrade
Ch'en's letter, we should do well to wait a little longer
before adopting further measures for coercing the Canton
Government. (Peking telegram to Foreign Office No.32 of
the 20th September, 1926). With respect to the new con--
sumption and production taxes,he pointed out that the
production tax might be strongly opposed by Japan, that paper protests against both taxes would probably be made
by all the Powers and that Sir Francis Aglen, unless as-
sured of the material support of the Powers, would presun-
ably bow to "force majeure" and accept instructions from
the Canton Government to assist in the manner proposed.
He advised that we should give the Canton Government to
understand that, once the boycott was raised and we were
in a position to resume friendly relations with them, we
should be prepared to enter into immediate negotiations
with them for the levy of the new surtaxes. by the Jus- toms in accordance with the arrangements contemplated t
Washington on certain conditions relating to discrimina-
tion and freedom from further taxation in treaty-port
areas. He suggested that this course of action might be
combined with a formal protest, taking due note of the
intention of the Canton Government to terminate the boy-
cott, but adding that we could not admit their right to
levy new taxes except as the result of negotiations with the Treaty Powers (telegram to Foreign Office No.331 of the 23rd September).
7. The Government of this Colony took a very dif ferent view. We in Hong Kong had fought the boycott
with steadily increasing success for fifteen months. We had not lent ourselves to the numerous intrigues,
proposed
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